Garmin Ltd. (GRMN): Today's Featured Electronics Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Garmin ( GRMN) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day down 0.4%. By the end of trading, Garmin fell $0.37 (-1.0%) to $35.33 on average volume. Throughout the day, 1,090,043 shares of Garmin exchanged hands as compared to its average daily volume of 1,353,100 shares. The stock ranged in price between $35.23-$35.99 after having opened the day at $35.75 as compared to the previous trading day's close of $35.70. Other companies within the Electronics industry that declined today were: Renewable Energy Trade Board ( EBOD), down 38.7%, Kemet Corporation ( KEM), down 26.2%, Nortech Systems Incorporated ( NSYS), down 20.0% and Orbit International ( ORBT), down 12.4%.
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Garmin Ltd., together with its subsidiaries, designs, develops, manufactures, and markets global positioning system (GPS) enabled products and other navigation, communication, and information products for the automotive/mobile, outdoor, fitness, marine, and general aviation markets worldwide. Garmin has a market cap of $7.0 billion and is part of the technology sector. The company has a P/E ratio of 12.8, below the S&P 500 P/E ratio of 17.7. Shares are down 12.8% year to date as of the close of trading on Wednesday. Currently there are 3 analysts that rate Garmin a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Ratings rates Garmin as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and increase in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow.

On the positive front, Suntech Power Holdings ( STP), down 10.4%, SolarCity ( SCTY), down 9.6%, Audience ( ADNC), down 8.3% and Amtech Systems ( ASYS), down 6.9% , were all gainers within the electronics industry with Corning ( GLW) being today's featured electronics industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the electronics industry could consider iShares Dow Jones US Technology ( IYW) while those bearish on the electronics industry could consider ProShares Ultra Short Semiconductor ( SSG).

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